Crypto Regulations in Türkiye: Licensing Platforms and Complying with FATF Standards

Crypto Regulations in Türkiye: Licensing Platforms and Complying with FATF Standards

Crypto News – The Turkish government is on the verge of introducing a significant regulatory framework for the cryptocurrency market. As outlined by Mehmet Şimşek, the Turkish Minister of Treasury and Finance, these forthcoming regulations are designed to provide legal clarity to key concepts within the crypto sphere, establish licensing protocols for trading platforms, and ensure alignment with the standards set by the Financial Action Task Force (FATF).

During an interview with Anadolu Agency on January 10, Şimşek disclosed that the development of this crypto regulatory framework for Türkiye is nearing completion, with current efforts focused on finalizing the technical aspects of its implementation.

The Minister highlighted the Turkish government’s commitment to mitigating the risks associated with cryptocurrency trading for regular investors, aligning these efforts with global best practices. “In our aim to align with international norms and to mitigate the risks for those trading in crypto assets within our nation, we are initiating steps parallel to global practices. This is also a stride towards moving out of FATF‘s grey list,” he stated.

Under the new regulatory measures, crypto platforms will be required to secure licenses from Türkiye’s Capital Markets Board (CMB). Additionally, the guidelines will offer precise legal definitions for various terms in the crypto space, including “crypto assets,” “crypto wallets,” “crypto asset service providers,” “crypto asset custody service,” and “crypto asset buying and selling platforms.” Şimşek provided a glimpse into how crypto assets will be defined, describing them as “intangible assets that are created and stored electronically using distributed ledger technology or similar technologies, shared across digital networks, and capable of representing value or rights.”

Notably, Şimşek mentioned that these regulations will not encompass specific taxation policies for virtual assets.

The Turkish authorities have been deliberating over the regulation of their cryptocurrency market for some time, focusing on licensing and taxation strategies to extricate the country from FATF’s “grey list.” A report from Chainalysis, a blockchain analytics firm, indicates that Türkiye ranked fourth globally in terms of raw cryptocurrency transaction volumes between July 2022 and June 2023. The country recorded approximately $170 billion in transactions, trailing only the United States, India, and the United Kingdom.